Electrolux: Relocations from Western Europe prompt local consolidation

The relocation of 50% of home appliances manufacturer Electrolux’s production facilities from Western Europe to countries where fixed costs are lower will consolidate the company’s operations in Romania, where it manufactures electric stoves at its Satu Mare-based plant. “The relocation entails the closure of several different plants in Western Europe, even plants that manufacture electrical stoves, which will lead to the development and consolidation of operations at the Romanian-based plant,” Anders Edholm, Vice-President Media relations and Issues management at Electrolux, told ZF. The company’s investments in Romania amounted to 1.4 million euros last year, and were used to introduce new manufacturing technology and develop a new range of home appliances. Overall investments, since the plant’s takeover until now, have amounted to 32 million euros. According to the company’s annual report, Electrolux posted turnover worth 150.7 million euros in 2007, up 6.5% on the previous year.